It's a complement. It is not always easy to get a clear answer if the question is full of grammar jargon. Is this for an exam?

Nearby is an adjective or an adverb that means "not far away". Examples: Do you live nearby? Yes, I live about a mile down the road. --------------------------------------------------- We don't use nearby as a preposition. We use near. Example: "I live near the school." I hope this helps! -Tutor Stephy (University student & soon to be italki community tutor!)